- The entities that will participate represent a market share of more than 95%.
- It may be used soon to make purchases in stores and online ; at the moment it only works for payments between individuals.
- The money is transferred from account to account instantaneously; You can transfer from 50 cents to 500 euros per operation per day.
Who has not ever needed to pay a dinner to a friend and found that he did not have enough money? And how many times have we paid at the bar everyone's drinks because the others did not have coins? These are some of the situations that can be avoided with a new system of payments between individuals that has arrived this week in Spain.
What is Bizum?
Bizum is an application for mobile that allows payments and collections between individuals, for cases in which the intermediaries do not have money in cash and without needing to know the bank account number of the recipient of the payment.
How can you start using this application?
There is no specific application for Bizum, but the service is integrated into the banks' own apps. In other words, in order to make payments through the mobile phone, it is only necessary to download the mobile operating platform of the bank of which you are a customer. Within these applications will be offered the possibility to customers to use the service. To make payments, both the money issuer and the receiver must have the app active.
What banks offer it?
For the moment, it can be used by the bank account holders of 16 Spanish banks: Caixabank, BBVA, Santander, Sabadell, Bankia, Banco Popular, Kutxabank, Ibercaja, Bankinter, Liberbank, Laboral Kutxa, Cecabank, Caja Sur, Imagin Bank, Oficinadirecta. com and Banco Pastor. These entities comprise 82% of the market share of the sector in Spain. During this month the service will be extended to eight other banks, which would reach a 95% quota. In addition, the managers of Bizum are working to incorporate another ten banking entities in the next months, although they do not give more details of which are those entities with which they are negotiating.
What kind of payments can be made with the application?
The service is designed to make small payments between individuals quickly. Money transactions are made from account to account, but it is not necessary to know the deposit number. It is enough to enter the intermediary's phone number, which facilitates the sending of money. In reality, its greatest use is to replace the delivery of cash. The situations in which it is useful are countless: for example, to pay half the dinner of a restaurant when we do not have loose coins, to charge the cost of a gift among a group of friends or even to ask for the repayment of a debt to someone without the excuse that he has no money at that moment.
Is there a money limit?
It is designed to carry out exchanges of small quantities. Transactions through Bizum may range between 50 cents and 500 euros, ie you can pay from a coffee to the month of rent to our roommate. In any case, each bank will have the power to set a different limit within that range.
Is the use of the app free or will they ask for a commission?
The banks that work with Bizum offer the service free of charge to their clients in the current launch phase. However, some of them do not rule out charging some type of commission in the future. At the moment, the only one that has already established its commission policy is Bankinter, which will offer the first ten operations free of charge. Between the eleventh transaction and the twentieth will be charged one euro. For the rest of operations there are still no details. In any case, the banks propose to exempt users from the payment of the commission with a high degree of fidelity.
Is the use of this application safe?
One of the great reluctance of consumers when using electronic commerce is the fear that payments are not made or that intermediaries can access personal and financial data. The banking entities, aware of this reluctance, clarify that the application is backed by the security systems of banks and complies with banking regulations regarding payments and data protection. In addition, to make the money transaction it will not be necessary to enter personal data or the bank account digits, so there is no way for any hacker to access confidential data. Bizum takes advantage of the information that already resides in the banks.
Will there be new bizum utilities in the future?
At the moment, only the account-based payment service is available, but the company that manages the application is already working so that in the future it can also be used to close online purchases and even to pay in shops. The system that would be used for this would be the NFC (near-field-communication, or proximity communication) and the POS (terminal point of sale).
Will there be enough users of this application?
For the use of this application to be successful it is necessary to extend it among the citizens, since the payer and the collector must have downloaded the platform. The managers of Bizum assure that 37,000 users have already been registered and more than 7,500 operations have been carried out. "It's a spectacular start," said yesterday the CEO of Bizum, Angel Nigorra. The goal is to reach 1,000 million operations in a period of five years. This would be equivalent to making 7% of all electronic banking transactions through this service.